The Watkins Firm has more than four decades of experience resolving investor and shareholder disputes in California.  Our state laws in California provides extensive protections for minority shareholders and it is important to work with shareholder’s rights attorneys who provide sound, informed counsel on federal, state and California statutes as they apply to any shareholder dispute or lawsuit.

Resolving investor and shareholder disputes in California begins with a thorough understanding of the facts at hand in chronological order, and the potential damages associated with the shareholder dispute.  A detailed chronology and an accurate assessment of potential damages provide the leverage needed to quickly and efficiently gain the attention of opposing parties and their counsel.  We work to establish a productive negotiation focused upon accomplishing our client’s goals and objectives.  The Watkins Firm is able to resolve the vast majority of our investment related shareholder disputes through effective, leveraged negotiation.

We provide sound counsel to majority and minority shareholders to ensure they understand their rights in the matter.  We help them to assert their rights and protect the investment they’ve made in the corporation.  In many cases this involves access to vital corporate information and documents as well as the company’s books.

Unfortunately, there are many tactics which can be attempted to minimize or marginalize minority shareholders or to dilute the value of their interests.  If your corporation is considering an acquisition, merger or the sale of shares to another entity it should immediately raise red flags.  It is important to work with our experienced corporate shareholder attorneys to protect your investment and your stake in the corporation.  It is not uncommon for other shareholders to attempt to reduce or eliminate your power and financial standing and the value of your shares through the structure of a any transaction which involves an acquisition, merger or sale.

Pro-Tip: “We are often asked ‘What are some of the typical reports that a shareholder should expect to receive and what are some of my inspection rights as a shareholder?’ The answer is, it depends on how much they own, what percentage of the company they own, and if they hold less than a 5% interest in the company they have a general right to see the financial disclosures of the company.  If they are more than a 5% stakeholder, they can go audit the company’s books and records. And sometimes they’ll be told they have to sign a non-disclosure agreement to do so, but they can literally give notice and appear in two weeks at the company offices and start making copies or investigating what’s going on with the company. Or if that doesn’t happen, we can literally file a motion in court and have a judge order that they are to be given access to the books and records of the company.

There protections from minority shareholders against wrongful actions, by the majority interest or officers and directors,  But unless they have some type of shareholder agreement or some type of assurances or representations and warranties, then they just have the right to grievance in court.

For example, we’ve, we’ve had so many shareholder fights where a group of friends, or a group of friends who know friends, maybe 30 people invest in a company and it’ll be doing well, but not great. And these investors, the shareholders won’t be receiving disclosures, or they will be receiving them, but they sort of don’t add up. And then they do an investigation and they come to a law firm like the Watkins Firm and they say, ‘well, let’s get in there and start seeing the books and records,’ and you get some pushback from the company. And that’s when all the hairs in your neck stand up and you come back to the Watkins firm and we file a motion.

And we discover through our due diligence that the company’s doing very well and that they also formed an offshore corporation of the same name. And they’ve taken all the assets and they’re all driving Rolls-Royces. So this has happened more times than I can say, because it just does happen. Nobody fights over anything unless there’s money involved. If it’s just doing okay, they would tell the truth and say, it’s all great. But if that big money offer comes in the door and they have a way of keeping it for themselves, it’s very tempting for human nature to turn that down. That’s why you need a shareholders’ rights attorney from the Watkins Firm – to protect your rights, your interests, your money.” – Dan Watkins, Founding Partner

If you are involved in a shareholder dispute and are searching for attorneys with extensive experience resolving investor and shareholder disputes in California invite you to review our podcast Episode 14 – Shareholders Rights and Disputes as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today. Learn how we can help to protect your interests and resolve your dispute quickly and in a cost-efficient manner.